The Cost of Bankruptcy and How to Pay for It

The Cost of Bankruptcy and How to Pay for It

If someone is considering filing for bankruptcy, the odds are he or she may have trouble coming up with the money to pay for bankruptcy or hire an attorney to help him or her file. It is important to know what to expect before filing for bankruptcy and the costs associated with it.

Bankruptcy Filing Fees

As of December 1, 2016, the filing fee for a Chapter 7 bankruptcy is $335, while a fee for Chapter 13 bankruptcy is $310. If the individual is filing for Chapter 11 bankruptcy, the filing fee is $1,717, while a Chapter 12 bankruptcy filing fee is $275. Filing fees are set on a nationwide standard scale. The fees associated with filing for bankruptcy can fluctuate slightly from time to time.

Attorney’s Fees

Attorney’s fees can vary depending on the type of bankruptcy filed and where the client lives. If the individual lives in a more rural area or has a simpler case, the fees will understandably be lower. The two most common consumer bankruptcy filings include Chapter 7 and Chapter 13 bankruptcies. For Chapter 7 bankruptcy, attorney’s fees can range from between $1000 to $3,500. For Chapter 13 bankruptcy cases, the attorney’s fees are somewhat higher since these cases tend to last longer and can range from $1,500 to $6,000. In Chapter 13 cases, the court reviews the attorney’s fees unless they are lower than the amount that is considered reasonable, which can also vary depending on the location. Hiring an experienced bankruptcy attorney is extremely important when filing for bankruptcy. We did a recent posting on the dangers of filing bankruptcy pro se (without a lawyer) and the risks involved, which can include losing property one should not have to lose or getting your case dismissed completely for not filing the proper paperwork, etc. Make the wrong mistake, and you can end up with your bankruptcy petition thrown out of court and could be prevented from filing again for a long time. The Benenati Law Firm prides itself on charging lower fees than most of our competitors. For an exact cost, a FREE consultation will occur to determine whether bankruptcy is the best option for you.

Additional Bankruptcy Costs

In addition to filing fees and attorney’s fees, there are other costs associated with filing for bankruptcy. With Chapter 7 or Chapter 13 bankruptcy, the client must pay for credit counseling from an approved provider. He or she will also need to pay for a debtor education course after filing the case. These courses are minimally priced ranging from $15 to $35 per course.

How to Pay for Bankruptcy

Once the costs are known, the next question is: how does the individual wanting to file bankruptcy pay for it? Several different options are available for people interested in filing for either Chapter 7 or Chapter 13 bankruptcy. If the person is leaning towards Chapter 7, odds are, he or she will not have the resources on hand to pay everything upfront. Many bankruptcy attorneys offer affordable payment plans to their clients. These payment plans can vary depending on the client’s financial situation. The person may also look into raising the money to file for bankruptcy or ask friends or family to help front the money for the fees.

Fee Waiver

The filing fee for bankruptcy is normally due when the person files the petition, but the filer can request of the court that the fee be waived, as long as the filer did not pay an attorney fees to file his or her case. This is done through an application for a fee waiver. The bankruptcy court may waive the filing fee in a Chapter 7 or Chapter 11 case if it is determined that the individual has income less than 150 percent of the official poverty line.

At The Benenati Law Firm, we have helped thousands of individuals and families eliminate their debt and get a fresh start financially. If you have any questions on this topic or are struggling with overwhelming debt, call Orlando bankruptcy attorney, Walter Benenati at 407-777-7777. Attorney Walter Benenati filed bankruptcy in 2008 and can empathize with what you are going through. Ask Walter how you can restart your life. The day you hire our firm, we will contact your creditors to stop the harassment and collection calls. We make our hours convenient for our clients and offer free consultations on Saturdays (9:00 a.m. – 3:00 p.m.) and throughout the week until 5:00 p.m. If you are in a financial crisis and considering filing for bankruptcy, contact an experienced Orlando bankruptcy attorney who can advise you of all of your options.